Selling a house as a realtor means taking a listing under a written agreement with the owner and then managing every legal, financial, and logistical step from signed contract to recorded deed. You hold an active state license, owe the seller fiduciary duties, deliver the disclosures federal and state law require, market the property within fair housing rules, present every offer, and shepherd the transaction through contingencies and closing. Since the 2024 NAR settlement, one part of that job has changed materially: how you and your seller decide whether to compensate the buyer’s agent, and how that offer gets communicated.
License and Fiduciary Duties You Owe the Seller
You cannot list or sell real estate in any U.S. jurisdiction without an active real estate license issued by that state’s government.1National Association of REALTORS®. Licensing for Real Estate Professionals Practicing without one is a criminal offense in every state, typically a misdemeanor carrying fines, possible jail time, or both. The listing itself belongs to your brokerage, not to you personally, and your supervising broker carries ultimate liability for your work.
Once a seller signs with you, you owe them a defined set of fiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. You follow your client’s lawful instructions, never put your own interests ahead of theirs, tell them everything that could affect their decisions, protect their private information even after closing, handle money carefully, and bring competent judgment to every step. Confidentiality catches newer agents most often. Your seller’s motivation, bottom-line price, and timeline are never shared with a buyer or a buyer’s agent.
Agency Disclosure Before Substantive Work
Virtually every state requires you to give a written agency disclosure form before doing meaningful work for a client. The document states whether you represent the seller, the buyer, or both parties in dual agency. Rules on dual agency vary: some states permit it with informed written consent, some ban it, and many allow designated agency where two agents in the same brokerage each represent one side. Failing to disclose your role can void a contract and trigger discipline against your license.
The Listing Agreement and Its Protection Clause
The listing agreement is the contract that authorizes your brokerage to represent the property. The most common form is the Exclusive Right to Sell, which entitles your brokerage to a commission regardless of who finds the buyer.2National Association of REALTORS®. Consumer Guide: Listing Agreements The agreement identifies the property, sets the listing price from your comparative market analysis, states the commission rate, and defines the listing period.
Walk your seller through the protection clause, sometimes called a safety or tail clause. It entitles your brokerage to a commission if someone you introduced during the listing period buys the property after the agreement expires. The duration of the protection window is negotiable, and MLS policy requires the time period to be left as a blank filled in with the seller, not pre-printed.3National Association of REALTORS®. Current Listings, Section 17: Protection Clauses in Association MLS Standard Listing Contracts (Policy Statement 7.37) This clause is one of the most common sources of post-listing disputes.
Buyer-Agent Compensation After the 2024 Settlement
The 2024 NAR settlement changed the mechanics of buyer-agent compensation. Offers of compensation to buyer agents can no longer appear on any MLS.4National Association of REALTORS®. Summary of 2024 MLS Changes Compensation is still fully negotiable and still an option. Sellers can authorize you to offer it, but you communicate any offer through flyers, emails, brokerage websites, signage, or direct broker-to-broker agreements, not through the MLS feed.5National Association of REALTORS®. Compensation, Commission and Concessions
Seller concessions can still be listed on the MLS. Concessions can help buyers cover closing costs, loan origination fees, or fees for buyer-broker services. The restriction is that concessions cannot be conditioned on or tied to payment of a buyer’s agent.5National Association of REALTORS®. Compensation, Commission and Concessions On the buyer side, buyer agents must now enter into a written agreement with their client before touring any home, and that agreement must disclose the specific amount or rate of compensation rather than a range.4National Association of REALTORS®. Summary of 2024 MLS Changes
Have this conversation with your seller at the listing appointment. They need to decide whether to offer anything to a buyer’s agent, how much, and through which channels.
Required Disclosures and Title Work
Assemble the disclosure file before the property hits the market. Missing paperwork causes escrow delays and, worse, exposes your seller to post-closing liability.
Seller Property Condition Disclosure
Nearly every state requires the seller to complete a property condition disclosure, sometimes called a transfer disclosure statement. The form asks about known defects, past repairs, environmental hazards, and other issues affecting value. Get the version applicable to your state from your local association or brokerage. Make sure the seller answers thoroughly and honestly, because vague answers are where lawsuits come from.
Lead-Based Paint Disclosure
For any home built before 1978, federal law adds a layer you are personally responsible for. The seller must give the buyer an EPA-approved lead hazard information pamphlet, disclose any known lead-based paint or hazards, and hand over available records or reports.6Office of the Law Revision Counsel. 42 US Code 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The buyer then gets a 10-day window to conduct a lead inspection at their own expense, though they can waive it in writing.7eCFR. Subpart A Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale or Lease of Residential Property
The purchase contract must include a signed Lead Warning Statement, and you must sign a certification that you informed the seller of their obligations and ensured compliance.7eCFR. Subpart A Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale or Lease of Residential Property This is one of the few areas where you face personal liability regardless of what the seller does.
Preliminary Title Report
Order a preliminary title report early. The title company searches county records and produces a report showing legal ownership, the property’s legal description, and any recorded encumbrances such as mortgage liens, property tax liens, easements, and CC&Rs. Liens are paid in the order they appear, so identifying them early also lets you build an accurate net-proceeds estimate for your seller.
Marketing, MLS Entry, and Fair Housing
Enter the listing into the MLS carefully. Incorrect square footage or lot size creates liability, not just confusion. Upload quality photos, write a detailed description, and include clear showing instructions. Install a secure electronic lockbox that tracks agent access, place professional signage, and route showing requests through an automated scheduling service for real-time seller approval. Report showing feedback back to the seller regularly.
Every word in your listing and every showing decision is governed by the Fair Housing Act. Federal law prohibits discrimination in the sale of housing based on race, color, religion, sex, disability, familial status, and national origin.8Office of the Law Revision Counsel. 42 US Code 3604 – Discrimination in the Sale or Rental of Housing Many states and localities add protected classes such as sexual orientation, age, or source of income.
You cannot steer buyers toward or away from properties based on any protected characteristic, and you cannot use marketing language that signals a preference. Describing a home as “perfect for a young professional” or emphasizing proximity to churches can create legal exposure. The same statute makes it illegal to induce a sale by representing that people of a particular race or background are moving into the neighborhood.8Office of the Law Revision Counsel. 42 US Code 3604 – Discrimination in the Sale or Rental of Housing Violations carry civil penalties, private lawsuits, and license discipline.
Presenting Offers
Present every offer to your seller promptly and objectively.9National Association of REALTORS®. Part 4, Appendix IX – Presenting and Negotiating Multiple Offers The duty applies regardless of price or terms. You don’t get to filter out lowball offers. Present them, share your analysis, and let the seller choose.
The seller can accept, reject, or counter. A counteroffer is a legal rejection of the original terms paired with a new proposal, usually adjusting price, closing date, contingencies, or repair responsibilities. Once both parties sign, the status changes to under contract on the MLS. The buyer deposits earnest money into escrow within a few business days of mutual acceptance, typically 1% to 3% of the purchase price. Missing the deposit deadline can be a breach.
Talk with your seller about multiple-offer strategy before it happens. Decide whether to disclose that multiple offers exist, whether to call for highest-and-best submissions, and how to weigh net proceeds, contingency risk, and closing timeline alongside the headline price.
From Contract to Closing
Between mutual acceptance and closing, your job shifts to transaction management.
Contingencies and Repair Requests
Most contracts include contingencies for inspection, financing, and appraisal. As each is satisfied, the buyer signs a written removal confirming they’re moving forward. Track the deadlines. If a contingency deadline passes without action, your seller may have grounds to issue a notice to perform or terminate, depending on the contract and state law.
Inspection contingencies often produce repair requests. Your seller can complete physical repairs before closing, offer a closing-cost credit so the buyer handles the work, or refuse and risk the buyer walking. Credits get documented in the purchase agreement and applied at closing.
Final Walk-Through
The buyer conducts a final walk-through, usually within five days of closing, to confirm the home matches the agreed condition. They verify that negotiated repairs were done, no new damage appeared, and no fixtures that should convey were removed. Problems here delay closing or trigger last-minute renegotiation.
Closing Disclosure and Settlement
Federal regulations require the lender to ensure the buyer receives a Closing Disclosure at least three business days before consummation of the loan.10eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions This document replaced the old HUD-1 settlement statement and final Truth-in-Lending disclosure under the TRID rule.11Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure FAQs It itemizes every cost, including loan charges, taxes, title insurance, and the distribution of proceeds.
Review the seller side carefully. Compare net proceeds against the estimate you gave at listing. Flag discrepancies in prorated taxes, unexpected fees, or recording charges before the closing table. Once the deed is recorded and funds disburse, hand off keys, remotes, and access codes. Your transaction duties end there. Confidentiality obligations continue indefinitely.
Transfer Taxes
Most states impose a transfer tax or documentary stamp fee when property changes hands. Rates range from zero in a handful of states to over 2% in high-cost markets. Who pays is set by local custom or negotiated in the contract. Build the applicable rate into your seller’s net sheet at listing.
Warning Your Seller About Wire Fraud
Wire fraud targeting real estate closings is one of the most significant risks in the industry. Scammers compromise email accounts of agents, title companies, or attorneys and send fake wiring instructions to buyers right before closing. The Consumer Financial Protection Bureau has reported hundreds of millions of dollars in losses from these scams.12Consumer Financial Protection Bureau. Mortgage Closing Scams: How to Protect Yourself and Your Closing Funds
Warn your seller never to email financial information and to verify any wiring instructions by phone using a number they obtained independently, not one from an email. Establish trusted contacts at the title company or closing attorney early and confirm the communication protocol before closing week.
Tax Situations to Flag for a Professional
You are not a tax advisor. But sellers routinely ask about tax consequences, and knowing the basics helps you route them to the right professional before they make expensive decisions.
Capital Gains Exclusion on a Primary Residence
A seller who used the property as their primary residence for at least two of the five years before the sale can exclude up to $250,000 of capital gain from income, or up to $500,000 for married couples filing jointly.13Office of the Law Revision Counsel. 26 US Code 121 – Exclusion of Gain From Sale of Principal Residence Both spouses must meet the use requirement, though only one needs to meet the ownership test.14Internal Revenue Service. Topic No. 701, Sale of Your Home Sellers with substantial appreciation or unusual ownership histories should consult a tax professional before closing.
1031 Exchanges for Investment Property
When your seller is selling investment or business property, a like-kind exchange under Section 1031 lets them defer the capital gains tax by reinvesting the proceeds into similar real property.15Office of the Law Revision Counsel. 26 US Code 1031 – Exchange of Real Property Held for Productive Use or Investment The timelines are strict: the seller has 45 days from closing to identify replacement properties in writing, and 180 days to complete the acquisition.16Internal Revenue Service. Like-Kind Exchanges Under IRC Section 1031 These deadlines cannot be extended except for presidentially declared disasters. A qualified intermediary must hold the funds; the seller can never take possession of the proceeds. Property held primarily for resale does not qualify.
FIRPTA Withholding for Foreign Sellers
If your seller is a foreign person or entity, federal law requires the buyer to withhold 15% of the amount realized on the sale and remit it to the IRS.17Office of the Law Revision Counsel. 26 US Code 1445 – Withholding of Tax on Dispositions of United States Real Property Interests This is a statutory requirement under the Foreign Investment in Real Property Tax Act, not a negotiation point.18Internal Revenue Service. FIRPTA Withholding The withholding comes out of the seller’s proceeds at closing. Foreign sellers can apply for a withholding certificate to reduce the amount if their actual tax liability is lower than 15%, but the application must be filed well before closing day. Identify foreign sellers early so the title company and a tax professional can coordinate the paperwork.